All details of Hungary’s gigantic Chinese loan must be made public, court rules
The opposition Democratic Coalition (DK) has won a lawsuit against the Government Debt Management Agency (AKK), which must therefore release all details, supplements, amendments and annexes of a EUR 1 billion Chinese loan agreement, the party’s deputy leader told an online press conference on Thursday.
László Varju said Hungarians had the right to know why and under what conditions they were being made indebted to China for decades, what exactly the loan would be spent on, how much interest must be paid and how long the repayments would take. Varju said that with this loan, China was pushing Hungary not only into economic but also political dependence.
About the Chinese loan
The EUR 1 billion loan in question was taken out without any official government announcement and was already drawn down in April 2023. The credit was secured from three Chinese financial institutions: the China Development Bank, the Export-Import Bank of China, and the Hungarian branch of the Bank of China. The loan has a maturity of three years.
This Chinese credit is among the largest active loan commitments of the Hungarian state, excluding bond-related debts. It stands out not only because of its size but also due to the secrecy surrounding it. Read more about the huge loan HERE.
Wish to read more about Hungary-China relations? Click HERE.
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